DOVER — Construction of a 50,000-square-foot workforce housing project has been made possible thanks to a multimillion dollar loan to The Housing Partnership from Centrix Bank.

This $5.9 million loan provides THP with more than half the cost of the development of the Woodbury Mill project.

“The financing of workforce housing is a complex, collaborative process involving vigorous competition for limited public and private resources,” Marty Chapman, executive director of THP, wrote in an email. “Whenever possible, The Housing Partnership makes it a priority to work with community-based lenders in our local developments.”

The Vice President of Centrix Bank's Dover location, Sean Fitzgerald, said in a public statement the bank is pleased to partner with THP.

“There continues to be a strong market for workforce housing in the Dover area, so a project of this magnitude will be a welcome addition for the city,” he said.

The estimated $9.8 million project will house 42 units throughout five stories in the 1885 shoe mill building located at 1 Dover Street, just walking distance to the downtown business district.

According to the bank's Executive Vice President David Cassidy, this is the second project that they've worked on with The Housing Project. After completing a workforce housing project in Rye, Cassidy said they were anxious to work on another project with them.

“Certainly there are a lot of communities in New Hampshire who need workforce housing, without question,” he said. “The feasibility study clearly showed the need in Dover and we think it is a great location right downtown and a great use of an older mill building and I think it is going to be great for the community.”

These apartments are considered affordable housing, being offered at below-market rental prices to income-qualified working households. They are also considered Tax Credit housing, being projects that are funded in part by the federal Low Incoming Housing Tax Credit program by the New Hampshire Housing Finance Authority.

This program is federally funded and encourages private investment in new, affordable rental housing. In addition to Dover, the program has brought affordable housing to Berlin, Hanover, Marlborough, Milford and Wolfeboro.

Chapman expects to close on the sale of the property and begin construction by March 1 and have the project complete by January 2014.